XRPUSD
- Understanding how stochastic is formed is one thing, but knowing how it will react in different situations is more important. For instance:
Common triggers occur when the %K line drops below 20—the stock is considered oversold, and it is a buying signal.
If the %K peaks just below 100 and heads downward, the stock should be sold before that value drops below 80.
Generally, if the %K value rises above the %D, then a buy signal is indicated by this crossover, provided the values are under 80. If they are above this value, the security is considered overbought.
- It's helpful to note there are a few well-known ways to use the MACD:
Foremost is the watching for divergences or a crossover of the centerline of the histogram; the MACD illustrates buy opportunities above zero and sell opportunities below.
Another is noting the moving average line crossovers and their relationship to the centerline.
Integrating Bullish Crossovers
To be able to establish how to integrate a bullish MACD crossover and a bullish stochastic crossover into a trend-confirmation strategy, the word "bullish" needs to be explained. In the simplest of terms, bullish refers to a strong signal for continuously rising prices. A bullish signal is what happens when a faster-moving average crosses up over a slower moving average, creating market momentum and suggesting further price increases.
In the case of a bullish MACD, this will occur when the histogram value is above the equilibrium line, and also when the MACD line is of greater value than the nine-day EMA, also called the "MACD signal line."
The stochastic's bullish divergence occurs when the %K value passes the %D, confirming a likely price turnaround.
ATH IS YOUR 1ST TARGET/HURDLE, TARGETS ARE THERE IF YOU LOSE SUPPORT AS WELL.
source*
https://www.investopedia.com/articles/trading/08/macd-stochastic-double-cross.asp
Common triggers occur when the %K line drops below 20—the stock is considered oversold, and it is a buying signal.
If the %K peaks just below 100 and heads downward, the stock should be sold before that value drops below 80.
Generally, if the %K value rises above the %D, then a buy signal is indicated by this crossover, provided the values are under 80. If they are above this value, the security is considered overbought.
- It's helpful to note there are a few well-known ways to use the MACD:
Foremost is the watching for divergences or a crossover of the centerline of the histogram; the MACD illustrates buy opportunities above zero and sell opportunities below.
Another is noting the moving average line crossovers and their relationship to the centerline.
Integrating Bullish Crossovers
To be able to establish how to integrate a bullish MACD crossover and a bullish stochastic crossover into a trend-confirmation strategy, the word "bullish" needs to be explained. In the simplest of terms, bullish refers to a strong signal for continuously rising prices. A bullish signal is what happens when a faster-moving average crosses up over a slower moving average, creating market momentum and suggesting further price increases.
In the case of a bullish MACD, this will occur when the histogram value is above the equilibrium line, and also when the MACD line is of greater value than the nine-day EMA, also called the "MACD signal line."
The stochastic's bullish divergence occurs when the %K value passes the %D, confirming a likely price turnaround.
ATH IS YOUR 1ST TARGET/HURDLE, TARGETS ARE THERE IF YOU LOSE SUPPORT AS WELL.
source*
https://www.investopedia.com/articles/trading/08/macd-stochastic-double-cross.asp
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